Biggest hurdles for Start-ups
Raising Capital
In past few years, there is a huge boom in the domain of Startups. The startups’ culture is taking over all over the world. We dream, we think & we put our dream into action and what’s next?
We are in so much hurry to launch our startups that we sometimes miss small
things which might become a huge problem when we start executing our work on our dream project. One such problem is raising the sufficient capital for the proper functioning of our startups. They say, always deliver more than expected, but to deliver something you also must have sufficient resources and that’s where the real problem starts.
Today, here we are discussing all such problem which a startup must avoid while raising the capital.
- Vague Vision
The problem starts at the starting. Unless and until you are well-prepared with your plan you should never execute it. Even if you are expecting someone to invest in your startups, the investor won’t be satisfied unless a proper and clear business vision is presented. - Lack of Market Knowledge
The second most important problem in raising sufficient fund for startups is the unawareness of the market scenario. Before jumping into the market just make sure that you have answers to the questions such as who is the targeted audience for your products/ services? how your product or service is unique from other? how quickly your product or service can grow? And many others. - Lack Understanding of Requirements
If you are about to launch a startup and if you are trying to raise a capital from the market, then you should always aware of your requirements. Your approached investors always interested in two things:
a. how much money you require and,
b. how that money will be spent
never give your investor a fuzzy answer, it might create hurdle in raising capital for the startup. - Absence of Team Work
Individually we are drops, but together we are an ocean. A nice bound team plays a vital role in raising capital. If you do not have a proper team or well-qualified members in the key position of your startup business, then it takes a quite a deal in raising the capital. With a well-qualified team, you can not only impress your investors but, you can always utilize the raised capital in the most efficient way. - Choosing Wrong Capital Raising Option
The market is full of benefactors who are ready to fund your business and through which you can raise a handsome capital. But before asking the benefactors to raise capital for your small business, you must have a proper clarity on your present financial situation and your risk-taking capacity.
Always do thorough research and then only come to the final conclusion of raising the fund. - Improper Cash Flow Management
The liquidity is one such thing that makes the operation of any organisation runs smooth. Be it a small scale industry or a large scale enterprise proper cash flow is always must for everyone. When it comes to startups, the proper management of cash flow can take your business to soaring heights. A startup must ready to face all consequences if they do not have a proper cash flow management system. Funds, Capital or Money you may call it by any name, it is a lifeline of any business. For a startup, a sufficiently raised fund is everything, without which it is impossible to survive in the market. Thus, avoid the above-discussed problems in raising the capital for startups.
Kambio Ventures sponsors articles, by a range of independent freelance journalists across the globe, to help promote the global start-up community. In doing so, Kambio Ventures looks to provide valuable insight, debate and social engagement on a range of specialist topics.
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Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the position of Kambio Ventures.
